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Income from Brazil

Foo FighterFoo Fighter Just JoinedRegistered Posts: 4
I have an author client who has sold the rights to a book in Brazil.

When she has been paid the advance, the Brazilian authorities have deducted tax at source at 15%.

What is the correct treatment of this income on the tax return? Do we include the income as her UK trade and claim the Tax Credit Relief for the tax deducted at source?

Her agent has advised her that "as the Brazilians have taxed her at source, she won't get taxed on the income in the UK"


  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    It doesn't look like there's a specific double taxation treaty in force with Brazil, unless your client is in shipping or air transport.

    You can normally claim double taxation relief on the lower of the tax suffered abroad or the tax suffered in the UK.

    This is a specialist area due to the technicalities applying to each country and what treaties are applicable (if any), but HMRC's guidance re: Brazil is here: http://www.hmrc.gov.uk/manuals/dtmanual/DT3900+.htm
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